DoD's $12.7M Tactical Software Contract Awarded to BAE Systems Under Full and Open Competition
Contract Overview
Contract Amount: $12,715,117 ($12.7M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2006-07-24
End Date: 2011-07-31
Contract Duration: 1,833 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TACTICAL SOFTWARE DEVELOPMENT AND MAINTENANCE
Place of Performance
Location: KEYPORT, KITSAP County, WASHINGTON, 98345
Plain-Language Summary
Department of Defense obligated $12.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TACTICAL SOFTWARE DEVELOPMENT AND MAINTENANCE Key points: 1. Contract value of $12.7 million for tactical software development and maintenance. 2. BAE Systems Technology Solutions & Services Inc. is the sole awardee. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The contract spans over 1800 days, suggesting a long-term need for these services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar software development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and evaluation are not provided.
Taxpayer Impact: Taxpayer funds are utilized for tactical software development, with the efficiency of spending dependent on project execution and cost control.
Public Impact
Ensures the availability of critical tactical software for the Department of the Navy. Supports national defense capabilities through ongoing software development and maintenance. Potential for technological advancements in military operations through software upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 69 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may not adapt well to rapidly changing technology.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense needs.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to software development for defense applications. Spending benchmarks for similar tactical software contracts can vary widely based on complexity and technology.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting large prime contractors were involved. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy contracting officers to ensure performance and cost adherence. Accountability for software quality and timely delivery is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of detailed cost breakdown.
- Potential for scope creep.
Tags
engineering-services, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TACTICAL SOFTWARE DEVELOPMENT AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.7 million.
What is the period of performance?
Start: 2006-07-24. End: 2011-07-31.
What was the competitive landscape like during the bidding process, and how did it influence the final price?
While awarded under 'full and open competition,' the specific number of bids received and the evaluation criteria are not detailed. A robust competitive landscape typically drives down prices, but the complexity and specialized nature of tactical software can limit the number of qualified bidders, potentially impacting price discovery.
What are the primary risks associated with a Cost Plus Fixed Fee contract for tactical software development?
The primary risk is that the contractor may not be sufficiently incentivized to control costs, as the government bears the majority of the cost risk. This can lead to cost overruns if the fixed fee is not carefully determined and if effective oversight is lacking to manage the 'cost plus' aspect.
How effective is this contract in ensuring the long-term technological relevance of the Navy's tactical software?
The effectiveness hinges on the contractor's ability to deliver adaptable and maintainable software within the evolving technological landscape. The contract's duration (over 1800 days) presents a risk of obsolescence if not managed with foresight and regular technology refresh cycles.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002406R3234
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $355,961,391
Exercised Options: $80,296,855
Current Obligation: $12,715,117
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4018
IDV Type: IDC
Timeline
Start Date: 2006-07-24
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2019-06-25
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